PUBLIC UTILITY DISTRICT NO. 1 OF LEWIS COUNTY
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1 PUBLIC UTILITY DISTRICT NO. 1 OF LEWIS COUNTY Board of Commissioners Meeting March 6, 2018
2 Public Utility District No. 1 of Lewis County Date Time 3/6/ :00 AM Meeting called by Commissioner Dahlin Location th Street, Morton, WA Item # Item Owner 1 Call to Order President 2 Changes/Additions to Agenda President 3 Public Comments (Limit to 3 minutes per person) Public 4 Approval of Consent Agenda (All matters listed within the Consent Agenda have been distributed to each member of the Commission for reading and study, are considered to be routine, and will be enacted by one motion of the Commission with no separate discussion. If separate discussion is desired by any member of the Commission, that item will be removed from the Consent Agenda and placed on the Business Agenda by request.) a) Minutes of February 27, 2018 commission meeting b) Cowlitz Falls Project and Electric System vouchers c) Travel Authorization 5 Business Agenda Davis Break (5 Minutes) 6 Other Business 7 Management Report a) CFP Report a) First 8 Meeting Reports 9 Adjournment ***9:00 a.m. Workshop Agenda
3 The Board may meet in Executive Session for the purpose of discussing matters as authorized by RCW (1) such as, but not limited to: the sale or acquisition of real estate, reviewing negotiations on the performance of a publicly bid contract, receiving and evaluating complaints or charges against an officer or employee, evaluating the qualifications of an applicant or performance of an employee, and/or consulting with legal counsel on litigation or potential litigation. Announcement of Executive Session The regular meeting will recessed so that the Commissioners, and enter into an Executive Session for ( ) minutes until a.m. as authorized by RCW (1) section : (a) To consider matters affecting national security; (b) To consider the selection of a site or the acquisition of real estate by lease or purchase when public knowledge regarding such consideration would cause a likelihood of increased price; (c) To consider the minimum price at which real estate will be offered for sale or lease when public knowledge regarding such consideration would cause a likelihood of decreased price. However, final action selling or leasing public property shall be taken in a meeting open to the public; (d) To review negotiations on the performance of publicly bid contracts when public knowledge regarding such consideration would cause a likelihood of increased costs; (e) To consider, in the case of an export trading company, financial and commercial information supplied by private persons to the export trading company; (f) To receive and evaluate complaints or charges brought against a public officer or employee. However, upon the request of such officer or employee, a public hearing or a meeting open to the public shall be conducted upon such complaint or charge; (g) To evaluate the qualifications of an applicant for public employment or to review the performance of a public employee. However, subject to RCW (4), discussion by a governing body of salaries, wages, and other conditions of employment to be generally applied within the agency shall occur in a meeting open to the public, and when a governing body elects to take final action hiring, setting the salary of an individual employee or class of employees, or discharging or disciplining an employee, that action shall be taken in a meeting open to the public; (h) To evaluate the qualifications of a candidate for appointment to elective office. However, any interview of such candidate and final action appointing a candidate to elective office shall be in a meeting open to the public; (i) To discuss with legal counsel representing the agency matters relating to agency enforcement actions, or to discuss with legal counsel representing the agency litigation or potential litigation to which the agency, the governing body, or a member acting in an official capacity is, or is likely to become, a party, when public knowledge regarding the discussion is likely to result in an adverse legal or financial consequence to the agency. This subsection (1)(i) does not permit a governing body to hold an executive session solely because an attorney representing the agency is present. For purposes of this subsection (1)(i), "potential litigation" means matters protected by RPC 1.6 or RCW (2)(a) concerning: (i) Litigation that has been specifically threatened to which the agency, the governing body, or a member acting in an official capacity is, or is likely to become, a party; (ii) Litigation that the agency reasonably believes may be commenced by or against the agency, the governing body, or a member acting in an official capacity; or (iii) Litigation or legal risks of a proposed action or current practice that the agency has identified when public discussion of the litigation or legal risks is likely to result in an adverse legal or financial consequence to the agency. Page 2
4 Commissioner s Calendar Upcoming Meetings, Events, Etc. 03/06/2018 to 06/26/2018
5 March 6, 2018 All Day Commissioner Cournyer Absent 9:00 AM - 10:00 AM Copy: Commissioner Workshop -- 1st at Morton, all others at Chehalis 10:00 AM - 1:00 PM Copy: Commission Meeting -- 1st in Morton, all others in Chehalis When a holiday falls on a Monday or, that week s Commission Meeting and March 7, 2018 Wednesday 3:00 PM - 5:00 PM PPC Members Forum March 8, 2018 Thursday 8:00 AM - 12:00 PM PPC Members Forum -- Embassy Suites - Portland Airport March 12, 2018 Monday 11:30 AM - 12:30 PM Chamber Meeting -- O'Blarney's in Centralia March 13, :00 AM - 10:00 AM Copy: Commissioner Workshop -- 1st at Morton, all others at Chehalis 9:30 AM - 10:00 AM Per Diem Workshop 10:00 AM - 1:00 PM Copy: Commission Meeting -- 1st in Morton, all others in Chehalis When a holiday falls on a Monday or, that week s Commission Meeting and March 14, 2018 Wednesday 12:00 AM - 12:00 AM WPUDA Meetings -- WPUDA Office Stacy Davis 1 3/2/2018 8:39 AM
6 March 15, 2018 Thursday All Day WPUDA Meetings -- WPUDA Office Please See Above March 16, 2018 Friday 12:00 AM - 12:00 AM WPUDA Meetings -- WPUDA Office Please See Above March 20, :00 AM - 10:00 AM Copy: Commissioner Workshop -- 1st at Morton, all others at Chehalis 10:00 AM - 1:00 PM Copy: Commission Meeting -- 1st in Morton, all others in Chehalis When a holiday falls on a Monday or, that week s Commission Meeting and March 27, :00 AM - 10:00 AM Copy: Commissioner Workshop -- 1st at Morton, all others at Chehalis 10:00 AM - 1:00 PM Copy: Commission Meeting -- 1st in Morton, all others in Chehalis When a holiday falls on a Monday or, that week s Commission Meeting and 10:00 AM - 10:30 AM Low Income Senior Rate Quarterly Update This will be added as a Commission meeting agenda item at the end of every quarter. April 3, :00 AM - 10:00 AM Copy: Commissioner Workshop -- 1st at Morton, all others at Chehalis 10:00 AM - 1:00 PM Copy: Commission Meeting -- 1st in Morton, all others in Chehalis When a holiday falls on a Monday or, that week s Commission Meeting and Stacy Davis 2 3/2/2018 8:39 AM
7 April 4, 2018 Wednesday 3:00 PM - 5:00 PM PPC Members Forum April 5, 2018 Thursday 8:00 AM - 12:00 PM PPC Members Forum -- Embassy Suites - Portland Airport April 9, 2018 Monday 11:30 AM - 12:30 PM Chamber Meeting -- O'Blarney's in Centralia April 10, :00 AM - 10:00 AM Copy: Commissioner Workshop -- 1st at Morton, all others at Chehalis 10:00 AM - 1:00 PM Copy: Commission Meeting -- 1st in Morton, all others in Chehalis When a holiday falls on a Monday or, that week s Commission Meeting and April 17, :00 AM - 10:00 AM Copy: Commissioner Workshop -- 1st at Morton, all others at Chehalis 9:00 AM - 10:00 AM Copy: TEA Presentation to Lewis County PUD Board NW Pacific Avenue, Chehalis 10:00 AM - 1:00 PM Copy: Commission Meeting -- 1st in Morton, all others in Chehalis When a holiday falls on a Monday or, that week s Commission Meeting and April 24, :00 AM - 10:00 AM Copy: Commissioner Workshop -- 1st at Morton, all others at Chehalis 10:00 AM - 1:00 PM Copy: Commission Meeting -- 1st in Morton, all others in Chehalis When a holiday falls on a Monday or, that week s Commission Meeting and Stacy Davis 3 3/2/2018 8:39 AM
8 April 24, 2018 Continued May 1, :00 AM - 10:00 AM Copy: Commissioner Workshop -- 1st at Morton, all others at Chehalis 10:00 AM - 1:00 PM Copy: Commission Meeting -- 1st in Morton, all others in Chehalis When a holiday falls on a Monday or, that week s Commission Meeting and May 8, :00 AM - 10:00 AM Copy: Commissioner Workshop -- 1st at Morton, all others at Chehalis 10:00 AM - 1:00 PM Copy: Commission Meeting -- 1st in Morton, all others in Chehalis When a holiday falls on a Monday or, that week s Commission Meeting and May 14, 2018 Monday 11:30 AM - 12:30 PM Chamber Meeting -- O'Blarney's in Centralia May 15, :00 AM - 10:00 AM Copy: Commissioner Workshop -- 1st at Morton, all others at Chehalis 10:00 AM - 1:00 PM Copy: Commission Meeting -- 1st in Morton, all others in Chehalis When a holiday falls on a Monday or, that week s Commission Meeting and May 22, :00 AM - 10:00 AM Copy: Commissioner Workshop -- 1st at Morton, all others at Chehalis Stacy Davis 4 3/2/2018 8:39 AM
9 May 22, 2018 Continued 10:00 AM - 1:00 PM Copy: Commission Meeting -- 1st in Morton, all others in Chehalis When a holiday falls on a Monday or, that week s Commission Meeting and June 5, :00 AM - 10:00 AM Copy: Commissioner Workshop -- 1st at Morton, all others at Chehalis 10:00 AM - 1:00 PM Copy: Commission Meeting -- 1st in Morton, all others in Chehalis When a holiday falls on a Monday or, that week s Commission Meeting and June 6, 2018 Wednesday 3:00 PM - 5:00 PM PPC Members Forum June 7, 2018 Thursday 8:00 AM - 12:00 PM PPC Members Forum -- Sheraton Inn - Portland Airport June 11, 2018 Monday 11:30 AM - 12:30 PM Chamber Meeting -- O'Blarney's in Centralia June 12, :00 AM - 10:00 AM Copy: Commissioner Workshop -- 1st at Morton, all others at Chehalis 10:00 AM - 1:00 PM Copy: Commission Meeting -- 1st in Morton, all others in Chehalis When a holiday falls on a Monday or, that week s Commission Meeting and Stacy Davis 5 3/2/2018 8:39 AM
10 June 19, :00 AM - 10:00 AM Copy: Commissioner Workshop -- 1st at Morton, all others at Chehalis 10:00 AM - 1:00 PM Copy: Commission Meeting -- 1st in Morton, all others in Chehalis When a holiday falls on a Monday or, that week s Commission Meeting and June 26, :00 AM - 10:00 AM Copy: Commissioner Workshop -- 1st at Morton, all others at Chehalis 10:00 AM - 1:00 PM Copy: Commission Meeting -- 1st in Morton, all others in Chehalis When a holiday falls on a Monday or, that week s Commission Meeting and 10:00 AM - 10:30 AM Low Income Senior Rate Quarterly Update This will be added as a Commission meeting agenda item at the end of every quarter. Stacy Davis 6 3/2/2018 8:39 AM
11 Changes/Additions to the Agenda
12 Public Comment Members of the public will have an opportunity to speak during the open public meeting. Please limit individual to a maximum of three (3) minutes.
13 Consent Agenda a) Minutes of February 27, 2018 commission meeting; b) Cowlitz Falls Project and Electric System vouchers; c) Travel Authorization: o Dan Kay-APPA DEED Board Charlotte, NC May 2-3, 2018 and Colorado Springs, CO Sept , 2018 o Dan Kay-Utility Energy Forum Rohnert Park, CA April 25-27, 2018
14 MINUTES OF THE MEETING OF COMMISSIONERS February 27, 2018 The regular meeting of the Commissioners of Public Utility District No. 1 of Lewis County was held in the Chehalis Office of the District on the above date at 10:00 a.m. Those present were Dean Dahlin, President and Tim Cournyer, Secretary. Also present were Dan Kay, Manager; Rich Bauer, Treasurer; Brad Ford, Auditor; and Stacy Davis, Executive Assistant. Additional attendees included: Lora Provolt, HR Manager; Corenne Moses, Communications Liaison; Matt Samuelson, Power Manager; Bryan Watt, Operations Manager; Wendy Woody, Financial Analyst; and Dave Alumbaugh, Network Administrator Commissioner Dahlin led the flag salute. Commissioner Cournyer moved to approve the Consent Agenda as presented. The motion was seconded by Commissioner Dahlin. The Consent Agenda consisted of: a) Minutes of the February 13, 2018 Commission meeting; b) Electric Service vouchers numbered to and including totaling $4,449, and Cowlitz Falls Project vouchers numbered to and including totaling $188,367.96; c) Resolution No. 2797, Declaring Certain Scrap Surplus; and d) Resolution No. 2799, Charging Off Uncollectible Accounts Commissioner Dahlin supported the motion and it carried unanimously. Ms. Davis presented Resolution No. 2798, A Resolution Adjusting the Compensation of Daniel Kay, Manager of Public Utility District No. 1 of Lewis County, Washington. Commissioner Cournyer moved to approve Resolution No as presented. The motion was
15 seconded by Commissioner Dahlin. Commissioner Dahlin supported the motion and it carried unanimously. Mr. Bauer presented the Electric System Status of the Budget for December 2017 as a modified accrual report. Mr. Bauer reported that total revenues were approximately $6.9 million for December Operating expenses were approximately $7.9 million resulting in a deficit net margin of approximately $1 million after capital additions. Cash balances as of December were approximately $9.87 million in the unrestricted funds, approximately $931,000 in the Rate Stabilization Fund, and $1 million in the major catastrophe resulting in approximately $11.8 million excluding debt service, customer deposits, health and welfare reserve and conservation grant. Mr. Bauer noted that as of December 31, 2017 the District has a conservation loans receivable balance of approximately $128,000. Mr. Bauer noted that the twelve month rolling days cash on hand was 68 days and the debt service ratio for year-to-date ending December 2017 was estimated at The 68 days of cash-on-hand being below the 85 days cash-on-hand financial policy guidelines was discussed. Mr. Bauer reported on customer classes and MWh from each class. Mr. Bauer reported that the year to date operating revenue for fiber optic activity as of December 2017 was approximately $396,000 and year to date expenses including depreciation were approximately $103,000 resulting in a net margin of approximately $293,000 with approximately $1.3 million in net plant. Mr. Bauer further reported on the status of the FY 2018 Cowlitz Falls budget from October 2017 through December 2017 (first quarter). Revenues for the first quarter were
16 approximately $1.6 million and with expenses of approximately $788,000 resulted in a net margin of approximately $837,000. Mr. Bauer noted that generation at Cowlitz Falls Project was approximately 24,655,000 kwh. The cost per kilowatt-hour generated for December 2017 was $ with debt service and $ without debt service. Mr. Samuelson and Mr. Kay provided legislative updates on the carbon and renewable portfolio standards, and rural broadband deployment bills. Mr. Samuelson noted that the I-937 Compliance Audit is nearing completion. Mr. Samuelson further noted that the grant funds from the TransAlta Grant are nearly expended and that the program will be expiring. Mr. Samuelson further noted that the District is applying for a second energy efficiency grant from the TransAlta Transition Board. Mr. Samuelson and Mr. Kay discussed potential high density loads and a potential policy to address the risks with those operations. Mr. Kay reported that he and Joe First, Cowlitz Falls Project Superintendent attended the Northwest Hydro Association s annual conference last week. Topics included: spillway gates, spillways, inspections, operations of facilities, invasion species, and overall dam safety. Mr. Watt reported hiring two employees, one Lineman and one Groundman. Mr. Watt and Ms. Provolt further reported on two upcoming retirements. Commissioner Dahlin reported on the Washington Public Utility Districts Association (WPUDA) Day-on-the-Hill. Commissioner Dahlin discussed changes to the day of the week for the Legislative Reception next year. Commissioner Dahlin reported on topics of the WPUDA meetings included: carbon bill, telecommunication meeting, and Bonneville Power Administration (BPA) bill.
17 There being no further business, Commissioner Cournyer moved to adjourn. The motion was seconded by Commissioner Dahlin. Commissioner Cournyer supported the motion and it carried unanimously. ATTEST: Dean L. Dahlin, President Ben M. Kostick, Vice President Tim Cournyer, Secretary
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23 Public Utility District No. 1 of Lewis County Memo To: From: Commissioners Dan Kay Date: 3/1/18 Re: Out of State Travel Request I am requesting travel authorization for three out-of-state events in With my appointment to the APPA DEED board, the spring and fall board meetings a. Spring Charlotte, NC, May 2 nd -3 rd approximately $1,000 b. Fall Colorado Springs, CO, September 26 th -27 th, approximately $1, Utility Energy Forum April th Rohnert Park (Northern), CA. a. Registration which includes lodging and meals $750 b. Travel - $200
24 From: To: Subject: Date: Ben Kostick Stacy Davis agenda item Monday, March 5, :46:15 AM EXTERNAL Please Think Before You Click! Stacy if we haven t already approved my travel to the APPA Policy Makers Council meeting in DC July, July 23-25, I d like to submit it for approval. thanks Ben M. Kostick, CPA Ben M. Kostick, CPA Inc. 176 N.E. School St. P.O. Box 721 Chehalis, WA Phone Fax Cell benk@bmkcpa.com
25 Business Agenda
26 Other Business
27 Management Report a) CFP Report
28 Meeting Reports Commissioners, Manager, and/or Management Team will provide reports of meetings that they participated in or are pertinent to the operation of the District
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